Canadian Dollar jumps broadly after BoC statement. The tapering was well expected. But BoC now expects economic slack to be absorbed in H2 2022, suggesting that the timing of rate hike could happen much earlier than prior expected.
CAD/JPY appears to have drawn strong support from 55 day EMA and rebounded. Focus is back on 86.88 minor resistance. Break will suggest that pull back from 88.28 has completed at 85.40. Stronger rise would then be seen back to retest 88.28 high quickly.
EUR/CAD’s fall is also back on 1.4949 support with the steep post BoC fall. Break will indicate that corrective rebound form 1.4723 has completed at 1.5191, and bring retest of 1.4723 low.
